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 EPF increase its basic saving starting from 2017, Eligible amount increase fr 20% to 30%

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dasecret
post Nov 2 2016, 01:16 PM

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QUOTE(jfpbonline @ Nov 1 2016, 09:34 PM)
https://www.imoney.my/articles/this-is-how-...8000-affect-you

Further information on increasing basic saving in EPF acc1.
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Hi, do you think the article is accurate? Especially this part
To increase the amount in Account 1 to meet the savings threshold, the difference will be transfered from Account 2 to 1. This means that contributors will find a smaller amount in their EPF Account 2. A smaller Account 2 amount means less money for housing, medical and education withdrawals. This will definitely put more financial strain on the lower income group as they will need to save up more outside of EPF to fund for these.

I looked up EPF's statement on this and it doesn't talk about it at all. I would support the action to transfer acct2 balance into acct1 to make up for the shortfall, but I think there is a lot of practical aspects to address this since currently it's by default 70% Acc1: 30% acc2. The allocation method would need to change if they would fill the basic savings first. And what if later on I have a lot more in Acc1 than basic savings while my acc2 is lagging behind. Am I tend allowed to move the funds back to acc2 for my housing or education?

http://www.kwsp.gov.my/portal/en/news-list...DetailPage=true

QUOTE(Hansel @ Nov 2 2016, 10:28 AM)
So,....the final effect is... less amount in Acc 2 for withdrawals in future. which means more funds held by EPF !!
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I seriously question the accuracy of the article. But what is for sure is, the amount that one can withdraw to invest in unit trust would be less, although they can take out the amounts quicker (30% vs 20%). So UT agents need to find new revenue source
TSjfpbonline
post Nov 2 2016, 01:23 PM

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QUOTE(Hansel @ Nov 2 2016, 10:28 AM)
So,....the final effect is... less amount in Acc 2 for withdrawals in future. which means more funds held by EPF !!
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EPF investment is withdraw from Acc1. The withdrawal amount will increase if eligible for invest.

For example:

Year 2016 Age 30: Basic saving RM27,000, EPF acc1 amount 100k

Eligible amount = (RM100,000 - RM27,000) x 20% = RM14,600

Year 2017 Age 30: Basic saving RM29,000, EPF acc1 amount 100k

Eligible amount = (RM100,000 - RM29,000) x 30% = RM21,300
TSjfpbonline
post Nov 2 2016, 01:29 PM

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QUOTE(AIYH @ Nov 2 2016, 10:42 AM)
When will this take effect?

The age is follow birthday age or calendar age?

If by that age you dont have enough in acc1, money will transfer from acc2 to acc1?
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Is by your actual birthday age, I don't think we can transfer from acc2 if amount not eligible.
TSjfpbonline
post Nov 2 2016, 01:35 PM

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QUOTE(dasecret @ Nov 2 2016, 01:16 PM)
Hi, do you think the article is accurate? Especially this part
To increase the amount in Account 1 to meet the savings threshold, the difference will be transfered from Account 2 to 1. This means that contributors will find a smaller amount in their EPF Account 2. A smaller Account 2 amount means less money for housing, medical and education withdrawals. This will definitely put more financial strain on the lower income group as they will need to save up more outside of EPF to fund for these.

I looked up EPF's statement on this and it doesn't talk about it at all. I would support the action to transfer acct2 balance into acct1 to make up for the shortfall, but I think there is a lot of practical aspects to address this since currently it's by default 70% Acc1: 30% acc2. The allocation method would need to change if they would fill the basic savings first. And what if later on I have a lot more in Acc1 than basic savings while my acc2 is lagging behind. Am I tend allowed to move the funds back to acc2 for my housing or education?

http://www.kwsp.gov.my/portal/en/news-list...DetailPage=true
I seriously question the accuracy of the article. But what is for sure is, the amount that one can withdraw to invest in unit trust would be less, although they can take out the amounts quicker (30% vs 20%). So UT agents need to find new revenue source
*
Ya, I just noticed it, thanks for highlight it. We unable to transfer from acc2 if amount from acc1 not eligible.
Hansel
post Nov 2 2016, 02:04 PM

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Tq for the discussions,... I did not look too closely,... never had the intention to touch my EPF anyway,....

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